Exhibit 10.1


 


EXECUTED VERSION


 


AMENDMENT NO. 1 TO FINANCING AGREEMENT


 


AMENDMENT NO. 1 TO FINANCING
AGREEMENT (this "Amendment"), dated as of December 23, 2016, to the Financing Agreement, dated as of January 28,
2015 (as amended, restated, supplemented or otherwise modified from time to time, the "Financing Agreement"),
by and among Propel Media, Inc., a Delaware corporation, formerly known as Kitara Holdco Corp. (the "Parent"),
each subsidiary of the Parent listed as a "Borrower" on the signature pages thereto (together with the Parent
and each other Person that executes a joinder agreement and becomes a "Borrower" thereunder, each a "Borrower"
and collectively, the "Borrowers"), each subsidiary of the Parent listed as a "Guarantor" on
the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a "Guarantor"
thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a "Guarantor"
and collectively, the "Guarantors"), the lenders from time to time party thereto (each a "Lender"
and, collectively, the "Lenders"), HPS Investment Partners, LLC, a Delaware limited liability company, formerly
known as Highbridge Principal Strategies, LLC ("HPSIP"), as collateral agent for the Lenders (in such capacity,
together with its successors and assigns in such capacity, the "Collateral Agent"), and PNC Bank, National Association
("PNC"), as administrative agent for the Lenders (in such capacity, together with its successors and assigns in
such capacity, the "Administrative Agent" and together with the Collateral Agent, each an "Agent"
and, collectively, the "Agents"). The Borrowers, the Guarantors, the Agents and the Lenders are sometimes referred
to collectively as the "Parties," and each of the Parties is sometimes referred to individually as a "Party."


 


WHEREAS, the Borrowers,
the Guarantors, the Agents and the Required Lenders hereby agree to modify the Financing Agreement on and subject to the terms
and conditions set forth herein.


 


NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:


 


1.       Definitions.
Any capitalized term used herein and not defined shall have the meaning assigned to it in the Financing Agreement.


 


2.       Amendment.
Section 7.03 of the Financing Agreement is hereby amended by deleting the Total Leverage Ratio of "2.98:1.00" for December
31, 2016 and substituting the Total Leverage Ratio of "3.25:1.00"in its place.


 


3.       Conditions
Precedent to Effectiveness of this Amendment. This Amendment shall become effective upon the date the Agent receives this Amendment
fully executed by the Loan Parties and the Required Lenders in a sufficient number of counterparts for distribution to all (such
date being herein called the "Amendment Effective Date").


 


4.       Representations
and Warranties. Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:


 


(a)       Representations
and Warranties; No Event of Default. After giving effect to this Amendment, the representations and warranties herein,
in Article VI of the Financing Agreement and in each other Loan Document, on or immediately prior to the Amendment
Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applicable to
any representations or warranties that already are qualified or modified as to "materiality" or "Material Adverse
Effect" in the text thereof, which representations and warranties shall be true and correct in all respects subject to such
qualification) on and as of such date as though made on and as of such date, except to the extent that any such representation
or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct
on and as of such earlier date), and no Default or Event of Default has occurred and is continuing
as of the Amendment Effective Date (after giving effect to the amendments set forth in this Amendment) or would result from this
Amendment becoming effective in accordance with its terms.


 






    


     


    

 


(b)       Organization,
Good Standing, Etc. Each Loan Party (i) is a corporation, limited liability company or limited partnership duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) has all requisite
power and authority to conduct its business as now conducted and as presently contemplated, and to execute and deliver this Amendment,
and to consummate the transactions contemplated hereby and by the Financing Agreement, as amended hereby, and (iii) is duly
qualified to do business in, and is in good standing in each jurisdiction where the character of the properties owned or leased
by it or in which the transaction of its business makes such qualification necessary except (solely for the purposes of this subclause
(iii)) where the failure to be so qualified and be in good standing could not reasonably be expected to have a Material Adverse
Effect.


 


(c)       Authorization,
Etc. The execution, delivery and performance by each Loan Party of this Amendment (i) are within the power and authority of
such Loan Party and have been duly authorized by all necessary action, (ii) do not and will not contravene any of its Governing
Documents, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document) upon
or with respect to any of its properties, (iv) do not and will not result in any default, noncompliance, suspension, revocation,
impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its
properties, and (v) do not contravene any applicable Requirement of Law or any Contractual Obligation binding on or otherwise affecting
it or any of its properties except, in the case of clause (iv), to the extent where such contravention, default, noncompliance,
suspension, revocation, impairment, forfeiture or nonrenewal could not reasonably be expected to have a Material Adverse Effect.


 


(d)       Enforceability
of Loan Documents. This Amendment is a legal, valid and binding obligation of such Person, enforceable against such Person
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting creditors' rights generally and by principles of equity.


 


(e)       Governmental
Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is
required in connection with the due execution, delivery and performance by any Loan Party of this Amendment other than filings
by the Parent to be made with the Securities and Exchange Commission following such execution and delivery.


 


(f)       Continued
Effectiveness of Financing Agreement. Each Loan Party hereby (a) confirms and agrees that each Loan Document to which it is
a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that
on and after the Amendment Effective Date each reference in the Financing Agreement to "this Agreement", "hereunder",
"hereof" or words of like import referring to the Financing Agreement, and each reference in any other Loan Document
to "the Financing Agreement", "thereto", "thereof", "thereunder" or words of like import
referring to the Financing Agreement, shall mean and be a reference to the Financing Agreement as amended by this Amendment, and
(b) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent or
any Lender, or to grant to the Collateral Agent or any Lender a Lien on any collateral as security for the Obligations of such
Loan Party from time to time existing in respect of the Financing Agreement and the Loan Documents, such pledge, assignment and/or
grant of a Lien is hereby ratified and confirmed in all respects.


 






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5.       Miscellaneous.


 


(a)       This
Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which
shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Amendment by telefacsimile or electronic mail transmission shall be effective
as delivery of a manually executed counterpart of this Amendment.


 


(b)       Section
and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.


 


(c)       This
Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.


 


(d)       Each
Loan Party hereby acknowledges and agrees that this Amendment constitutes a "Loan Document" under the Financing Agreement.
Accordingly, it shall be an Event of Default under the Financing Agreement if (i) any representation or warranty made by a Loan
Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made,
or (ii) a Loan Party shall fail to perform or observe any term, covenant or agreement contained in this Amendment. The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agents or any Lender
under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents, except as expressly provided
herein.


 


(e)       Each
Loan Party hereby acknowledges and agrees that: (a) neither it nor any of its Subsidiaries has any claim or cause of action against
any Agent or any Lender (or any of the directors, officers, employees, agents, attorneys or consultants of any of the foregoing)
and (b) the Agents and the Lenders have heretofore properly performed and satisfied in a timely manner all of their obligations
to the Loan Parties, and all of their Subsidiaries and Affiliates. Notwithstanding the foregoing, the Agents and the Lenders wish
(and the Loan Parties agree) to eliminate any possibility that any past conditions, acts, omissions, events or circumstances would
impair or otherwise adversely affect any of their rights, interests, security and/or remedies. Accordingly, for and in consideration
of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Subsidiaries
and Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the "Releasors")
does, to the maximum extent permitted by applicable law, hereby fully, finally, unconditionally and irrevocably release, waive
and forever discharge the Agents and the Lenders, together with their respective Affiliates and Related Funds, and each of the
directors, officers, employees, agents, attorneys and consultants of each of the foregoing (collectively, the "Released
Parties"), from any and all debts, claims, allegations, obligations, damages, costs, attorneys' fees, suits, demands,
liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or
indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which
any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission
or thing whatsoever done or omitted to be done, in each case, on or prior to the Amendment Effective Date directly arising out
of, connected with or related to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction
related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation
or control of any of the assets of any Loan Party, or the making of any Loans or other advances, or the management of such Loans
or other advances or the Collateral. Each Loan Party represents and warrants that it has no knowledge of any claim by any Releasor
against any Released Party or of any facts or acts or omissions of any Released Party which on the date hereof would be the basis
of a claim by any Releasor against any Released Party which would not be released hereby.


 


(f)       This
Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject
matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.


 


(g)       The
Borrowers agree to pay on demand all reasonable out-of-pocket costs and expenses of the Agents and the Lenders in connection with
the preparation, execution and delivery of this Amendment.


 


(h)       EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED
ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE REVISIONS CONTEMPLATED HEREIN.


 


[Remainder of Page Left Intentionally Blank]


 




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IN WITNESS WHEREOF, the parties have entered into
this Amendment as of the date first above written.


 


	 	BORROWERS:
	 	 
	 	PROPEL MEDIA, INC. (f/k/a Kitara Holdco Corp.)
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	KITARA MEDIA CORP.
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	PROPEL MEDIA LLC (f/k/a Future Ads LLC)
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	GUARANTORS:
	 	 
	 	KITARA MEDIA, LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	TEK ARRAY, INC. (f/k/a Health Guru, Inc.)
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 



 



    AMENDMENT NO. 1 TO FINANCING AGREEMENT


 


     


    




	
         
	 
	 	NEW YORK PUBLISHING GROUP, INC.
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	ANDOVER GAMES, LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	GATHER.COM ACQUISITION CORP.
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	APPENITY LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	ARCADEWEB LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	ARCADEYUM LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO



 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

 


	 	EPICPLAY LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	GAMEVANCE LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	GPV ENTERTAINMENT, LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	LIVINGPLAY LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	RESULT LINKS, LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	SOCIALRIVAL LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO



 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

 


	 	ARCADEISLE LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	WEBTEK SOLUTIONS LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	GLOBAL TONICS LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	TRU DIGIT LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	WEBIX TECH LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO
	 	 
	 	CORETEK WEB LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO



 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

 





	 	FOCAL DIGIX LLC
	 	
         

	 	By:	
        /s/ David
        Shapiro

	 	 	Name: David Shapiro
	 	 	Title: COO





 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     

    




 


	 	COLLATERAL AGENT:
	 	 
	 	HPS INVESTMENT PARTNERS, LLC (f/k/a Highbridge Principal Strategies, LLC)
	 	
         

	 	By:	
        /s/ Vikas
        Keswani

	 	 	Name: Vikas Keswani
	 	 	Title: Managing Director



 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

 


	 	ADMINISTRATIVE AGENT AND LENDER:
	 	 
	 	PNC BANK, NATIONAL ASSOCIATION
	 	
         

	 	By:	

	 	 	Name:
	 	 	Title:



 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

 





	 	LENDERS:
	 	 	 
	 	Reliance Standard Life Insurance Company
	 	 	 
	 	By: 	HPS Investment Partners, LLC, as Investment Manager
	 	 	 
	 	By:	/s/
Vikas Keswani
	 	Name: 	Vikas Keswani
	 	Title:	 Managing Director
	 	 	 
	 	Specialty Loan Institutional Fund III, L.P.
	 	 	 
	 	By: 	HPS Investment Partners, LLC, its Investment Manager
	 	 	 
	 	By:	/s/
Vikas Keswani
	 	Name: 	Vikas Keswani
	 	Title: 	Managing Director
	 	 	 
	 	Specialty Loan VG Fund, L.P.
	 	 	 
	 	By: 	HPS Investment Partners, LLC, its Investment Manager
	 	 	 
	 	By: 	/s/ Vikas Keswani
	 	Name: 	Vikas Keswani
	 	Title: 	Managing Director
	 	 	 
	 	Aiguilles Rouges Sector E Investment Fund, L.P.
	 	 	 
	 	By: 	HPS Investment Partners, LLC, its Investment Manager
	 	 	 
	 	By:	/s/
Vikas Keswani
	 	Name: 	Vikas Keswani
	 	Title: 	Managing Director




 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

 





	 	Specialty Loan FA Subsidiary I, L.P.
	 	 	 
	 	By:	HPS
Investment Partners, LLC, its Investment Manager
	 	 	 
	 	By:	/s/
Vikas Keswani
	 	Name: 	Vikas Keswani
	 	Title: 	Managing Director
	 	 	 
	 	Specialty Loan FA Subsidiary II, L.P.
	 	 	 
	 	By: 	HPS Investment Partners, LLC, its Investment Manager
	 	 	 
	 	By:	/s/
Vikas Keswani
	 	Name: 	Vikas Keswani
	 	Title: 	Managing Director




 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

 





	 	CERBERUS LEVERED LOAN OPPORTUNITIES FUND II, L.P.
	 	 
	 	By: 	Cerberus Levered Opportunities II GP, LLC
	 	Its: 	General Partner
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	CERBERUS NJ CREDIT OPPORTUNITIES FUND, L.P.
	 	 
	 	By: 	Cerberus NJ Credit Opportunities GP, LLC
	 	Its: 	General Partner
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	CERBERUS ASRS HOLDINGS LLC
	 	 	 
	 	By:	 
	 	Name:	
	 	Title:	 
	 	 	 
	 	CERBERUS KRS LEVERED LOAN OPPORTUNITIES FUND, L.P.
	 	 
	 	By: 	Cerberus KRS Levered Opportunities GP, LLC
	 	Its: 	General Partner
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 







 






    AMENDMENT NO. 1 TO FINANCING AGREEMENT




     


    

  


	 	MGG SPECIALTY FINANCE FUND LP
	 	 	 
	 	By:	/s/ Kevin Griffin
	 	Name:	Kevin Griffin
	 	Title:	CEO & CIO



 




 


AMENDMENT NO. 1 TO
FINANCING AGREEMENT